400 Jobs Canceled As Eastern Iowa Processor Stops Expansion
A major meat processor in Eastern Iowa has stopped its latest expansion that was set to bring hundreds of jobs to the area.
Back in March, Iowa Premium announced its plans to replace its current factory in Tama with a bigger one. This new facility would hire 400 more employees, bringing its total employment to 1,200 people. This new facility would also double the Iowa Premium’s production capacity.
So, what happened to the new expansion?
In an article in the Des Moines Register, the project was “indefinitely paused” due to increased construction costs. Iowa Premium will decide if it will continue the project at a later time
For now, the company will continue to operate in its current facility with its 830 employees.
Back in December, Iowa Premium received $14 million in state and local tax incentives for the new processing facility.
This new facility was expected to open sometime in 2024 and would have brought 396 new full-time jobs to the area. Most of the new jobs would pay at or above $20 per hour and offer "health benefits with over 50 percent company-paid medical premiums for single and family coverage."
The new facility was planned to be built just north of the current plant, which is on the eastern portion of Tama. It was expected to take up around 800,000 square feet and cost about $26 million. However, the total cost of the project was budgeted at $562 million.
They planned to spend $230 million on the facility's construction and $293 million on the machines.
Increasing construction prices have affected other construction projects in the state such as the pro soccer field in Des Moines.
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